Fimbank enters India joint venture

Fimbank plc, the trade finance bank headquartered in Malta, has entered into a joint venture to carry out factoring, forfeiting, trade finance and related business in India. India Factoring and Finance Solutions Private Limited will have a registered office in Mumbai. In a company statement on the Malta Stock Exchange on Wednesday, Fimbank plc said it had signed a shareholders' agreement and a share subscription agreement with leading Indian bank Punjab National, Banca IFIS, and Blend Financial Services Ltd.

IFIS has been in the factoring business since 1983 and is authorised to carry out banking activities in Italy by the Bank of Italy and specialises in domestic and international factoring activities. Blend is an integrated global financial services company offering debt syndication services, equity, insurance and management advisory services, and cross-border mergers and acquisitions, and management advisory services.

Factoring, or accounts receivable financing, is a financing method in which a business owner sells accounts receivable at a discount to a third party funding source to raise capital. It is one of the oldest forms of business financing.